XAN

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970 WEST VALLEY PARKWAY, SUITE 509 SAN DIEGO,
CALIFORNIA 92025 PHONE [phone] FAX
501.639.6825 www.nethercomm.com
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Nethercomm Background
Nethercomm is a privately-held Delaware
corporation based in Southern California and led
by start-up veterans who have extensive
experience in developing and rolling-out new
communications technologies. Nethercomm plans
to deliver the industrys most capable and lowest
cost last-mile communication technology by
combining our intellectual property and
proprietary technologies with established
broadband and natural gas distribution systems.
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Broadband Background

• The market for broadband services is enormous
• 47 Million US Broadband Subscribers
• 95 Million Domestic Cable/Satellite TV Customers
• 112 Million Residential Telephone Lines in the
  US
• Broadband Internet Subscriptions grew over 37
  last year
• 20 Million US Homes used Video-on-Demand in 2004
• Last year 32 Million residences received
  telephone service from non-RBOCs
• Adoption of broadband services remains
  constrained
• Today D/L rates average lt3 Mbps by 2009, 57-84
  Mbps will be needed
• U.S. pays about 35/month for 1.5Mbps in Japan,
  about 25 for 26 Mbps
• 80 do not have broadband, including half of
  those earning over 75K

The residential Broadband Industry will be worth
90B by 2009 representing a seven fold increase
in revenue over the next five years.
-- ARC Group
(www.arcgroup.com)
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Nethercomms Intellectual Property Enables
Delivery of Broadband Services Over Natural Gas
Distribution Piping
Nethercomms proprietary system "piggybacks"
high-performance broadband communications over
existing natural gas distribution networks
Broadband-in-Gas (BiG) leverages existing natural
gas infrastructure to bridge the last mile
which hampers other broadband approaches. Netherc
omm invented the BiG technology and is developing
and making BiG available through our development
partners and strategic alliances.
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Broadband in Gas (BiG) Network Technology
Harnesses Basic Physics For Super-Efficient
Signal Transmission
Nethercomm Wireless Transmission -- Uses
wireless radio frequency (RF) transmission like a
conventional radio station broadcasting through
the atmosphere -- Signal travels through the
hollow center of existing Natural Gas
distribution pipes like a coaxial cable, with the
gas being the conductive wire

• Using signals inside a buried conduit presents an
  unlimited private spectrum
• - very low-noise within the operating
  environment, zero conflict with external
  applications

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Ultra Wide Band (UWB) is a Communication
Technology Declassified by the US Defense
Department in 1994
Ultra Wide Band (UWB) Communication Extrem
ely low-power transmission         -- tiny
fractions of a watt for safe, efficient
transmission in flammable environment Spreads
signal over a block of frequencies         --
opposite of conventional radio, which puts high
power into a narrow frequency band Wide-spectrum
signal inherently robust, recoverable, and
interference-resistant        -- UWB redundancy
keeps signal intact even if an external source
jams a frequency Widely used for
state-of-the-art commercial wireless and military
communications         -- high efficiency, high
reliability, high performance
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Nethercomms Advanced Encoding Techniques Use
Digital Signal Processing to Enhance System
Performance
Multiple layers of security including full
encryption and hardware authentication        
-- intrinsic data integrity checks, strong
barriers to theft of data or services Automatic
traffic compression for increased throughput --
maximize productivity of available
bandwidth Digital keying" allows multiple
streams to share the same frequency range        
-- can reuse same spectrum without conflict for
multiple independent signals Intelligent
protocol for robust network operation and
quality-of-service management -- provides support
for advanced applications such as partitioned
VoIP bandwidth
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Operational Overview of the Nethercomm System
HUB
Ultra WidebandTransceiver
Ultra WidebandTransceiver
Network Operations Center
NG Service Cable TV HDTV/VoD/IP Phone/VoIP Broadb
and Internet WiFi/WiMAX Other Services
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Nethercomm Broadband Architecture
Nethercomm is enabling a complete broadband
service combining its break-through last-mile
technology with the best supporting
infrastructure to deliver high-performance
Internet, Television, Telephony, HDTV and other
applications
Tier 1 Internet
HEADEND NOC
Television Feed
Telephone Backbone
Hub
Hub
Node
Node
Node
w/ CPE hardware
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Nethercomm Has Compelling Advantages Over
Conventional Broadband Technologies
Pro Wireless install saves time and trenching
costs Con Weather, buildings, and electronics
may cause interference
Fixed wireless
0.5
0.5
Pro Uses CATV cable plant, low-cost CPE Con
Shared connection can overload, slow uploads,
high OPEX
0.13
Hybrid Fiber Coax (Cable)
1.5
Pro Data rates cable life, low maintenance and
power costs Con Huge deployment costs, no
consensus on preferred format
4.84
19.2
Fiber tothe home
Pro Link always delivers full bandwidth, good
upstream rate Con Expensive, slower downloads
than cheaper alternatives
0.6
1.0
Digital subscriber Line (DSL)
Pro Connects via existing phone wiring, multiple
ISP resellers Con Performance drops sharply with
range, susceptible to crosstalk
1.5
1.5
T1/T3
Pro Near universal coverage reaches inaccessible
locations Con Expensive service and equipment,
high latency, needs LoS
0.05
0.5
Satellite
Broadband In Gas
40.96
40.96
Pro fast, robust reliable link enables full
broadband Con availability limited to areas with
natural gas distribution
Typical Bandwidth (Mbps)
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Nethercomm Technology Trumps The Competition In
Subscriber Deployment Costs
7000
6000
5000
Per Subscriber Deployment Costs ()
4000
3000
2000
1000
0
xDSL
HFC
FTTx
BIG
CO and Distribution Headend
500
100
500
100
OSP and Transmission Media
200
1100
5000
0
CPE Customer Installation
300
300
1500
400
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Nethercomm Presents A Compelling Value
Proposition With The Lowest Cost and Highest
Bandwidth
Bandwidth (Kbps) per Subscriber Deployment
costs()
This "Last Mile solution delivers a uniquely low
CAPEX requirement. Subscriber connection costs
are truly incremental allowing the incorporation
complementary fiber networks. Avoided Last
Mile work significantly shortens time to market
and precludes many regulatory restrictions. Suppo
rts Residential, SME and Enterprise offerings on
same network delivering shared build-out savings
hence a key solution to digital divide
initiatives. Provides added benefits of
integrated gas line integrity monitoring, meter
reading and tamper prevention.
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Nethercomm System Capabilities Drive Bottom-Line
Benefits
?Strong Technology Powers Critical Advantages
?Rock-Bottom Cost Basis
?Tremendous Revenue Opportunities
?Competitive Position Strong
Nethercomm delivers solid value tobroadband,
telecom and gas utility providers
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Broadband access to the Internet will become as
important as electricity was at the turn of the
century
- Business Week